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Exercise 17-7 Plantwide overhead rate P1 Textra produces parts for a machine manufacturer....

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Accounting

Exercise 17-7 Plantwide overhead rate P1
Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $240,000 in the Molding department and $200,000 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows.
\table[[,Number of Units,Molding Department,Trimming Department],[,Hours per Unit,Total Hours,Hours per Unit,Total Hours],[Part Z,3,000,2.0MH per unit,6,000MH,3 DLH per unit,9,000DLH
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